Bal Krishen

“The Gulf’s next phase of growth is being driven by trade, artificial intelligence and human capital. The UAE has signed 37 Comprehensive Economic Partnership Agreements (CEPAs), with 18 already in force, supporting its ambition to lift non-oil foreign trade beyond $1tr by 2031. Meanwhile, AI investment has moved from announcements to execution. In June 2026, Saudi Telecom and HUMAIN expanded their partnership to build up to 1GW of AI data centre capacity, building on HUMAIN’s earlier $5bn agreement with AWS, while Stargate UAE’s first 200MW AI cluster is scheduled to go live in Q3 2026.

“The Gulf is also attracting the talent needed to support this transformation. Last year, Dubai entered the world’s top five hedge fund hubs, with the number of hedge funds in DIFC more than doubling to over 100 in just two years, driven not only by capital inflows but also the relocation of investment teams and senior decision-makers. That demand now extends across the broader economy, with 56 per cent of UAE employers planning to expand their workforce in 2026, particularly in AI, cybersecurity and data science.

“One of the most compelling aspects of the Gulf today is the scale and ambition of its sovereign capital deployment. Once driven primarily by real estate and domestic capital markets, the Gulf is now focused on becoming a global AI powerhouse by forging lasting partnerships with the world’s biggest technology companies. Just last year, Gulf countries committed around $66bn towards AI and digital transformation, with landmark investments including PIF’s $10bn partnership with Google Cloud, the 5GW Stargate UAE AI campus, and the $20bn AI infrastructure partnership between Brookfield and QIA. These investments go beyond funding technology — they are creating the infrastructure, partnerships, and ecosystems that could drive growth across the Gulf for years to come. That ambition is also reflected in national strategies. Saudi Arabia aims for AI to contribute 12 per cent of GDP by 2030, while the UAE targets AI to account for 40 per cent of its economy by 2031, underscoring how central the technology has become to the region’s long-term economic vision. The momentum is already visible. The Gulf is not just investing in global AI leaders—it is building the compute capacity to become a major AI hub itself. MGX has invested in OpenAI, Anthropic and xAI; Humain has committed $3bn to xAI alongside a Saudi data centre; and Microsoft’s $15.2bn investment through G42’s subsidiary, Khazna, highlights growing confidence in the region. The opportunity extends well beyond AI. The Gulf is attracting global businesses, investment capital and skilled talent, with Dubai’s DIFC reporting a 30 per cent YoY increase in new company registrations in the 12 months to June 2026. Non-oil sectors already account for around three-quarters of GCC GDP, but what makes the coming decade especially exciting is how sovereign capital is turning that diversified base into a lasting competitive advantage in the global AI economy.”